Expedia says to pay $660 mn for Australia's Wotif

  • Reuters, Sydney
  • |
  • Updated: Jul 07, 2014 10:12 IST

US travel giant Expedia Inc said on Monday it agreed to buy Australian online travel group Wotif.com Holdings Ltd for A$703 million ($660 million) in cash, sending Wotif's shares 25% higher.

Queensland-based Wotif said its directors, who own 20.2% of the company's shares, and co-founder Andrew Brice, who has 15.5%, plan to vote in favour of the deal.

The purchase gives Expedia an established base to grow in the Asia-Pacfic region while providing a lifeline to Wotif as it struggles with weak hotel bookings and declining profits.

Expedia's A$3.30 per share offer is a 14% premium to Wotif's most recent closing price of A$2.90 and higher than levels traded since Dec. 17, when the company issued a profit warning.

Expedia's Nasdaq-listed shares last closed up 2.4% at $82.21.

 

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